Clergy

Can we give our retiring pastor a monetary thank-you gift?

Yes, but keep in mind monetary gifts to employees are subject to special rules. Two main issues must be addressed: (1) whether the gift will create excessive compensation, and (2) whether the gifts given by individual(s) will be tax-deductible. It's wise to engage a...

Estimated Tax – Safe Harbor Rules

Because clergy are exempt from tax withholding on their paychecks, they will usually need to make Estimated Tax Payments throughout the year to ensure that their taxes are paid. If you don’t do it, it can result in penalties. If you expect to owe at least $1,000 in...

Can I deduct ministry related meals?

Meals related to ministry activities can be deducted for tax purposes under certain conditions. The relevant IRS guidelines and criteria for deducting such expenses, including specific requirements or limitations that apply to clergy or ministers, are as follows:...

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